The customer journey in the German automotive industry : a model of practice to identify and implement new touchpoints

Abstract

Driven by evolving customer preferences, technological advancements, environmental requirements to reduce CO-2 emissions and other external factors such as the recent COVID-19 pandemic, the automotive industry is undergoing significant changes in customer buying behaviour. Over the past decade, researchers and practitioners have been debating these developments including the understanding, improvement, and management of customer journeys. Traditional touchpoints are deemed less relevant, while new touchpoints emerge rapidly due to innovative technologies, novel market entrants, and new marketing approaches. However, selecting and developing the most valuable touchpoints is challenging from a company’s perspective. Research has focused on customer journey management but lacks practical guidance for organisations to pinpoint and implement new touchpoints effectively. This gap is being addressed using mixed-methods research to explore customer journey management in the context of a Japanese automotive brand operating in Germany. The customer perspective is investigated by directly exchanging with customers of the brand using questionnaires and focus group interviews. Firstly, the customer journey in the awareness, research and purchase phase is analysed based on questionnaires, taking online and offline touchpoints from the brand, its dealer network and third parties into account. Insights are generated to identify different behaviour patterns between groups of customers, which are evaluated and assessed using hypothesis testing. Secondly, focus group interviews are conducted in which the findings from the questionnaires are confirmed, and additional qualitative insights are generated. By generating and analysing this customer feedback, a deeper understanding of customer behaviour and touchpoint usage in the automotive industry and beyond is generated, and a customer journey model is proposed. Moreover, a model of practice is developed to identify upcoming touchpoints and evaluate their potential future benefits from a company’s standpoint. This eight-step model is intended to serve as a guiding framework for practitioners, enabling them to capitalise on customer interactions by strategically investing in the most relevant and valuable touchpoints, including new ones. Practically, being able to identify new and existing touchpoints, as well as critical success factors, offers opportunities to implement and enhance the touchpoints of the organisation. Investing in these touchpoints can improve customer experiences and increase customer satisfaction and loyalty. Understanding customer behaviour throughout the automotive purchase process enables businesses to tailor marketing efforts, product offerings, and customer interactions according to customer needs and expectations